Senate Bill sb0012A

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2004                                  SB 12-A

    By Senator Alexander





    41-482C-05

  1                      A bill to be entitled

  2         An act relating to the restoration of

  3         educational facilities damaged by hurricanes in

  4         2004; creating the Educational Facilities

  5         Hurricane Restoration Cash Flow Loan Program

  6         for the purpose of assisting district school

  7         boards in making timely payments in restoring

  8         educational facilities; providing eligibility

  9         requirements for receiving a cash flow loan;

10         requiring the Department of Education to

11         administer the loan program and distribute loan

12         funds; requiring the Department of Community

13         Affairs to notify the Department of Education

14         when certain federal payments have been

15         distributed; providing an appropriation;

16         providing an effective date.

17  

18         WHEREAS, educational facilities in this state

19  experienced widespread damage as a result of hurricanes during

20  2004, and

21         WHEREAS, anticipated funds from insurance settlements

22  and federal disaster assistance payments are expected to cover

23  most of the cost of restoring affected educational facilities,

24  and

25         WHEREAS, damaged educational facilities must be

26  restored to safe and satisfactory use as soon as possible, and

27         WHEREAS, due to the widespread nature of the damage,

28  additional time is required to complete damage assessments,

29  settle insurance claims, and determine the amount of federal

30  disaster assistance payments, and

31  

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 12-A
    41-482C-05




 1         WHEREAS, some school districts have experienced much

 2  greater damage than others, and

 3         WHEREAS, the Legislature determines that it is in the

 4  best interest of the state to establish a loan program to

 5  expedite the reconstruction of public educational facilities

 6  while insurance settlements and federal disaster assistance

 7  payments are being processed, NOW, THEREFORE,

 8  

 9  Be It Enacted by the Legislature of the State of Florida:

10  

11         Section 1.  There is established for the 2004-2005

12  fiscal year an Educational Facilities Hurricane Restoration

13  Cash Flow Loan Program. District school boards that need

14  assistance with cash flow in order to make timely payments to

15  contractors and suppliers in restoring educational facilities

16  damaged by a hurricane or tropical storm during the 2004

17  hurricane season may apply to the Department of Education for

18  a cash flow loan. The amount of the loan may not exceed the

19  amount the district needs to meet timely payments to

20  contractors and suppliers for the restoration of damaged

21  facilities. To be eligible for a cash flow loan, a district

22  school board must meet the following requirements:

23         (1)  Have one or more educational facilities damaged or

24  destroyed by a named hurricane or tropical storm during the

25  2004 hurricane season;

26         (2)  Have an agreement to pay contractors or suppliers

27  for the restoration of the damaged facilities, but have

28  insufficient cash flow to make timely payments;

29         (3)  Agree to repay, from funds received from insurance

30  claims, Federal Emergency Management Agency payments, or other

31  

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 12-A
    41-482C-05




 1  fund sources, the full amount of the funds received from the

 2  cash flow loan; and

 3         (4)  Agree that if repayment is not made in a timely

 4  manner, the Department of Education shall withhold future

 5  distribution of public education capital outlay funds, or

 6  other fixed capital outlay funds, until repayment is received

 7  by the department.

 8         Section 2.  The Department of Education shall provide

 9  information and instructions for applying for a cash flow loan

10  and administer the loans in accordance with this act. The

11  department shall distribute loan funds based on the district

12  superintendent's certification of the amount needed for

13  payments that are due during the following 30 days. All funds

14  repaid shall be deposited unallocated into the General Revenue

15  Fund within 30 days after receipt by the department.

16         Section 3.  The Department of Community Affairs shall

17  notify the Department of Education when payments from the

18  Federal Emergency Management Agency for the 2004 storms have

19  been distributed to a district school board that has received

20  an educational facilities hurricane restoration cash flow

21  loan.

22         Section 4.  The sum of $100 million is appropriated

23  from nonrecurring revenues in the General Revenue Fund to the

24  Department of Education for the 2004-2005 fiscal year for the

25  sole purpose of making educational facilities hurricane

26  restoration cash flow loans to eligible district school boards

27  in accordance with the provisions of this act.

28         Section 5.  This act shall take effect upon becoming a

29  law.

30  

31  

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 12-A
    41-482C-05




 1            *****************************************

 2                          SENATE SUMMARY

 3    Creates the Educational Facilities Hurricane Restoration
      Cash Flow Loan Program within the Department of Education
 4    for the purpose of assisting district school boards in
      making timely payments in restoring educational
 5    facilities damaged by the hurricanes in 2004. Requires
      the Department of Community Affairs to notify the
 6    Department of Education when FEMA payments have been
      distributed. (See bill for details.)
 7  

 8  

 9  

10  

11  

12  

13  

14  

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  4

CODING: Words stricken are deletions; words underlined are additions.